Estate and gift taxation law is the area of legal practice that deals with the payment (and avoidance of) taxes on gifts and inheritances. Attorneys practicing in this field assist consumers in setting up gifts and shielding estates from federal and state taxes on property held at the time of death. While most small estates are not subject to taxation, larger estates require a great deal of planning and legal positioning in order to avoid a substantial financial loss by beneficiaries.
One important aspect of estate and gift taxation law is the management of existing trust funds in order to minimize the tax burden on the recipient. Additionally, qualified estate and gift taxation attorneys can advise individuals on the tax law governing gifts and the maximum amount that can be given tax-free to others during a given year. These law firms also work to minimize the inheritance tax payable by beneficiaries of an estate; this is distinguished from the estate tax, since inheritance tax is paid by the recipient rather than the estate itself. Attorneys who work in estate and gift taxation handle all aspects of transfer of assets during the settlement of the estate, and strive to minimize the tax burden on those left behind throughout the process. Enlisting the help of a licensed estate and gift taxation attorney is essential for those who expect to leave a sizable estate to their beneficiaries.